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No new money for housing in Spring Budget
09/03/2017

The Spring Budget was presented to Parliament by the Chancellor
of the Exchequer on Wednesday 8 March. The main headline for local
authorities in England was the allocation of £2billion of
additional funding over the next three years to spend on adult
social care. However, any mention of housing was conspicuous
by its absence.

In a Budget that contained far fewer new tax and spending
measures than recent previous Budgets, the main announcements
were:

Tax:

The main rate of self-employment Class 4 National Insurance
contributions to rise from 9% to 10% in April 2018 and 11% in April
2019. The Class 4 rate is currently levied on self-employment
profits above £8,060. This change raises between £325 million and
£645 million a year.

The tax-free allowance for dividend income to be reduced from
£5,000 to £2,000 from April 2018. This change raises over £800
million a year from 2019/20.

Local authorities to receive around £300 million over the next
three years to provide discretionary support for businesses facing
increases in business rates bills following April 2017's business
rates revaluation in England.

Additional funding of £20-25 million a year to support some
businesses that no longer receive small business rate relief after
the revaluation.

A 25% charge to be introduced targeted at those seeking to
reduce the tax payable by moving their pension wealth to another
jurisdiction. This change raises around £60 million a year.

UK VAT of 20% will apply to mobile phone use by UK residents
when outside the EU. Currently VAT is applied when UK residents use
their mobile phone inside the EU, but not when outside. The change
ensures mobile phone companies cannot use the inconsistency to
avoid UK VAT. This change raises around £65 million a year.

Spending:

Local authorities in England to receive £2 billion of
additional funding over the next three years to spend on adult
social services.

NHS in England to receive an additional £100 million in 2017/18
for capital investment in A&E departments. The funding will
support up to 100 new GP triage projects.

NHS in England to receive £325 million over the next three
years to invest in local Sustainability and Transformation Plans
(STPs). STPs are locally developed proposals to improve local
health and care.

£320 million of additional spending this Parliament to extend
the free schools programme introducing new schools in England,
including selective schools. Over £500 million will be provided in
2021/22.

Additional funding for 16-19 technical education in England.
New T-levels, offering technical training routes, will be
introduced from 2019/20. Around £300 million will be provided
during this Parliament.

An additional £216 million spread over 2018/19 and 2019/20 for
school maintenance.

The House of Commons Library has produced a useful summary of Spring Budget 2017 and the Office
for Budget Responsibility's forecasts for the economy and public
finances.

However, in a dramatic U-turn, less than a week after the Budget
announcement on changes to self-employment National Insurance
Contributions, the Chancellor announced that he would not be
proceeding with the measures outlined in the Budget for changes to
Class 4 NICs.